This is due to the distributed system. Within this system, data exchange and verification between nodes takes place. This is done by consensus. A blockchain can ensure that a third party is not required to ensure the reliability of a full chain.

Blockchain Operation

A block consists of two components: a block header and content! In blocks, the actual data to be retained and blockheaders confirm when and in which order blocks are registered (time stamps to avoid duplicate expenses and conflicts).In a block header, a reference to the previous block has also been processed. This is a link in the chain of blockchains.

Chain

A block is linked by reference to a previous block. This reference is actually a hash from the previous block header. With a blockchain, it is possible to make an additional difficulty in calculating this reference.

This happens by demanding the hash that is being calculated. There is a search for a hash that begins with a number of zeros. The higher the number of required zeros, the harder it is to find a hash. This method was used for the first time to prevent spam from email addresses.

Blockchain - Because a hash is a so-called "one-way function", a hash cannot be derived from what the data looks like. It is also intended that a hash is unique. If a bit or character changes into a piece of code or document, the hash will change in its entirety. Any change is measurable.

Blockchain blocks are thus connected through a hash. This hash is stored in the header, and this will be used to make the hash of that block. This means that when changing a block, all blocks that come after that must also be changed.

Suppose there is a block 1. After block 1, a block 2, 3 and 4 will appear. If block 1 is modified, the reference in block 2 is no longer correct (because the hash has to be recalculated). Block 2 must also be adjusted accordingly. The reference in blockchain 3 is no longer correct, so block 3 has to be modified, etc.

Because there are multiple nodes, these types of issues can be detected and resolved (by stopping the adjustments or ignoring the node sending these data). This system ensures the integrity that blockchains offer.

Blockchin Mining

Within a blockchain, one can choose to make integrity even stronger. This can be done by adding miners to the process. Miners calculate hashes. They use special systems intended for these purposes. Miners are rewarded in many cases (as with bitcoins).

Because there are Blockchain miners, and thus more computing power, more difficult hashes can be calculated. The power needed to calculate hashes provides more integrity within a system, because to falsify a new calculation of a hash is required. The chance that a Blockchain hash is cheated is always present, but this chance is very small.

When possessing an amount of computing power within a mining network, which exceeds 50% of the total computing power within the mining network, it is possible to modify data in a blockchain. This is also the reason why some companies opt for a blockchain network without miners.

Blockchain Applications

Blockchain technology is at the base of cryptovaluta as Bitcoin , but also knows other applications. In order to determine the opportunities for the Dutch government of the new technology, various pilots have been organized since 2016, including the cadastre, the tax office and the Chamber of Commerce.

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